2016-10-21 12:18:31

As expected the ECB has left interest rate unchanged at the level of 0%, deposit rate for commercial banks was also left unchanged at the level of -0.4%.

At the press conference, President of ECB Mario Draghi has denied information spread by mass media that the Central Bank is considering the reduction of asset purchase program.

Draghi also said that the ECB may extend program of bond purchase, which expires at the end of March 2017.

After comments by Mario Draghi and the decision by the ECB not to change interest, the Euro has dropped significantly in the market. Active sales of the pair EUR/USD has led to strengthening of the USD against major currencies. The index WSJ, which reflects position of the American currency against a basket of 16 currencies, has grown by 0.5% up to 88.36. According to CME Group probability of the interest rate hike in the USA in December is now 74%, which also contributes to the rise in the USD.

At the beginning of the European session sales of the Euro continue, and the pair EUR/USD is at the 7-month lows near the level of 1.0900.

Rapid rise in the USD is partly caused by the increase of probability of the rate hike in December to 74% from 69% a day earlier.

Strong US macro-economic data and comments from the Fed’s officials convince market participants that the increase of the in US interest rate will take place soon, which also contribute to the rise in the USD in the foreign exchange market.EUR/USD: ECB will continue asset purchase program.  Fundamental analysis for 21/10/2016